Purchase Solution

Price & Value Weighted Index Calculations

Not what you're looking for?

Ask Custom Question

Price-Weighted and Value-Weighted Index Problem

Price per Share
Shares Outstanding Beginning of YR Price End of YR Price

ABC Stock 50,000 $75.00 $83.00

XYZ Stock 60,000 $50.00 $65.00

1) ABC and XYZ stock make up an index. What is the price-weighted return for the index?

2) What is the value related return for the above index?

Please show all step-by-step calculations.

Purchase this Solution
Solution Summary

The solution calculates the price and value weighted index.

Solution Preview

See the attached file for clarity.

Price-Weighted and Value-Weighted Index Problem

Price per Share
Shares Outstanding Beginning of YR Price End of YR ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Price Weighted, Equal, Capitalization Weighted Index

    In a cap-weighted index, large price moves in the largest components can have a dramatic effect on the value of the index.

  • Construct price and value weighted index

    The value weighted index shows better return as the value invested in stock A which produced lowest return is least. This post addresses how to construct a price -weighted index and value weighted index for stocks.

  • Price-Weighted Divisor for the price-weighted index

    Solution describes the steps to calculate Price-Weighted Divisor for the price-weighted index.

  • Indexes

    Construct a price-weighted market index using the three stocks, X, Y, and Z. What is the index's value on date 1? Price Weighted Index on date 1 = (16+5+24)/3=15 b. What is the price-weighted index's value on date 2?

  • Construct both a price weighted and value weighted index

    S&P500 is a value weighted index, hence, the return on ThreeStock value weighted index resembles S&P500. 5.

  • Calculations for value of index

    377052 Calculations for value of index Please help with the following problem.

  • Investment Problem/Graph

    Use this data to calculate a market weighted index and plot the value of this index on the same graph as the price weighted index. Assign a starting index value of 100. f.

  • Price weighted

    134963 Pricing Index You have a price weighted index made up of two stocks, A and B. The price of A equals $30 and the price of B equals $70. What is the current value of this index?

  • Price weight; market efficiency; performance of stocks

    -0.39% -0.59% Standard Deviation 5.29% 4.95% 6.36% 7.06% DJIA is a price weighted index and S&P500 is a value weighted index, hence I expected that the return on WTK price weighted index would resemble more with that on the DJIA.

View More Related Solutions